cover of episode Beijing Steps In to Fund Chinese Tech Startups

Beijing Steps In to Fund Chinese Tech Startups

2024/10/14
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WSJ What’s News

Chapters

Amid a decline in venture capital funding, the Chinese government is increasing its involvement in supporting tech startups. This shift raises questions about the long-term impact on China's tech industry and its ability to compete with Western advancements.
  • Beijing is increasing its role in funding Chinese tech startups due to a drop in private venture capital.
  • The Chinese government is using local government funds and state-owned banks to support tech startups.
  • Some investors say state funds now make up the majority of their investments in Chinese tech.
  • This intervention raises concerns about hindering innovation and the ability of Chinese tech to compete globally.

Shownotes Transcript

A.M. Edition for Oct. 14. A sharp drop in venture-capital funding is leading the Chinese government to get more involved in grooming) the country’s tech industry. The WSJ’s Liza Lin) says that in the long run, that strategy could handicap China’s efforts to catch up with Western advances. Plus, a drone launched by Hezbollah hits a military base, highlighting a weak spot in Israel’s air-defense systems). And, most economists surveyed by WSJ think inflation would be higher) under the policies of Donald Trump than those of Kamala Harris. Luke Vargas hosts.

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